Johnson & Johnson is currently negotiating with plaintiffs’ lawyers who have opposed the company’s proposed settlement of lawsuits alleging that its baby powder and other talc products caused cancer.
The company is seeking to eliminate the remaining holdouts to finalize a $6.48 billion global settlement through the bankruptcy of a subsidiary after previous attempts were twice rejected by federal courts. J&J says the majority of claimants support the settlement offer, but it has paused the vote count to gather additional support from those who have recently opposed the deal.
Erik Haas, J&J’s worldwide vice president of litigation, stated that the company has agreed to a short extension of the certification timeline to allow plaintiffs’ attorneys more time to speak with their claimants about potentially supporting the plan.
The proposed settlement focuses on ovarian cancer claims and builds on the company’s previous settlement of lawsuits alleging that its talc caused mesothelioma, a deadly cancer linked to asbestos exposure.
J&J plans to place a subsidiary into bankruptcy if it secures at least 75% of the talc claimants’ votes for the settlement proposal. This would enforce a global settlement to end all related lawsuits and prevent new ones from being filed, protecting J&J from future multibillion-dollar verdicts.
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